Applied Digital (NASDAQ:APLD) Shares Gap Up – Here’s What Happened

Applied Digital Co. (NASDAQ:APLD) gapped up before the market opened on Tuesday . The stock had previously closed at $7.97, but opened at $8.23. Applied Digital shares last traded at $7.90, with a volume of 1,790,467 shares changing hands.

Analyst Ratings Changes

A number of analysts have commented on APLD shares. Lake Street Capital increased their price target on shares of Applied Digital from $7.00 to $11.00 and gave the stock a “buy” rating in a research report on Thursday, October 10th. Cantor Fitzgerald started coverage on Applied Digital in a report on Friday, December 20th. They issued an “overweight” rating and a $15.00 target price on the stock. Needham & Company LLC reiterated a “buy” rating and set a $11.00 target price on shares of Applied Digital in a research report on Friday, November 1st. HC Wainwright upped their price target on Applied Digital from $5.00 to $10.00 and gave the stock a “buy” rating in a research report on Wednesday, October 16th. Finally, B. Riley lifted their price objective on Applied Digital from $8.00 to $9.00 and gave the company a “buy” rating in a research report on Friday, September 13th. Seven research analysts have rated the stock with a buy rating, Based on data from MarketBeat, Applied Digital presently has an average rating of “Buy” and a consensus price target of $11.14.

Applied Digital Trading Down 4.1 %

The stock has a fifty day simple moving average of $8.48 and a 200 day simple moving average of $6.75. The firm has a market capitalization of $1.61 billion, a P/E ratio of -6.53 and a beta of 4.67. The company has a quick ratio of 0.22, a current ratio of 0.22 and a debt-to-equity ratio of 0.62.

Applied Digital (NASDAQ:APLD) last issued its earnings results on Wednesday, October 9th. The company reported ($0.15) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.28) by $0.13. Applied Digital had a negative return on equity of 88.87% and a negative net margin of 74.95%. The company had revenue of $60.70 million for the quarter, compared to the consensus estimate of $54.85 million. During the same quarter last year, the company earned ($0.10) EPS. The firm’s quarterly revenue was up 67.2% on a year-over-year basis. As a group, research analysts forecast that Applied Digital Co. will post -0.4 EPS for the current year.

Insider Transactions at Applied Digital

In other news, CEO Wes Cummins sold 200,000 shares of Applied Digital stock in a transaction dated Wednesday, November 27th. The stock was sold at an average price of $9.20, for a total value of $1,840,000.00. Following the sale, the chief executive officer now directly owns 3,875,955 shares of the company’s stock, valued at approximately $35,658,786. The trade was a 4.91 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Richard N. Nottenburg sold 80,000 shares of the stock in a transaction that occurred on Monday, October 14th. The shares were sold at an average price of $7.37, for a total value of $589,600.00. Following the transaction, the director now directly owns 433,686 shares of the company’s stock, valued at approximately $3,196,265.82. The trade was a 15.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 359,369 shares of company stock valued at $3,115,161. 11.81% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of APLD. Bank of New York Mellon Corp raised its stake in Applied Digital by 36.2% during the second quarter. Bank of New York Mellon Corp now owns 304,869 shares of the company’s stock valued at $1,814,000 after purchasing an additional 80,958 shares in the last quarter. Commonwealth Equity Services LLC raised its position in shares of Applied Digital by 115.7% during the 2nd quarter. Commonwealth Equity Services LLC now owns 66,688 shares of the company’s stock valued at $397,000 after buying an additional 35,768 shares in the last quarter. Rhumbline Advisers lifted its holdings in shares of Applied Digital by 30.0% in the 2nd quarter. Rhumbline Advisers now owns 140,087 shares of the company’s stock valued at $834,000 after acquiring an additional 32,336 shares during the last quarter. Crumly & Associates Inc. purchased a new position in Applied Digital in the second quarter worth about $110,000. Finally, Headlands Technologies LLC increased its stake in Applied Digital by 381.8% during the second quarter. Headlands Technologies LLC now owns 8,749 shares of the company’s stock worth $52,000 after acquiring an additional 6,933 shares during the last quarter. 65.67% of the stock is owned by hedge funds and other institutional investors.

Applied Digital Company Profile

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services.